As technological innovations such as cloud computing, the Internet of Things, robotic process automation, and predictive analytics are integrated into organizations, it makes them increasingly susceptible to cyber threats. Fortune 1000 companies, for example, have a 25% probability of being breached, and 10% of them will face multi-million loss. In smaller companies, 60% will be out of business within six months of a severe cyberattack. This means that governing and assessing cyber risks becomes a prerequisite for successful business performance — and that investors need to know how vulnerable companies really are.
This need for transparency has been recognized by the regulators and facilitated by the new cyber security rules. Currently, the U.S. Security and Exchange Commission (SEC) has increased its enforcement to ensure companies maintain adequate cybersecurity controls and appropriately disclose cyber-related risks and incidents.
Unfortunately, our research shows that cyber risk is not easy to understand.
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